In the current environment, retail store sales are basically nonexistent, which means that brands are being forced to rely on Ecomm. To that end, we have been helping our clients use geospatial data to find MSAs and Zip Codes where their Ecomm is weaker than it should be. We do this by comparing our client’s Ecomm sales (where they are successful) to the presence of their competitor’s physical locations (where they should be successful). The scatter below shows a client under-performing in Midwestern markets.
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Webster Pacific believes that the foundation of any analysis is strategy. In our location analytics work, we go beyond what software tools and real estate brokers provide, by thinking deeply about our clients’ business and how they are strategically positioned. This means understanding the competitive landscape. We created the below 2×2 matrix to better understand the fitness landscape.
Key Takeaways:
- Gyms have expanded outside of the US more than studio classes. This is a function of 1) gyms are easier to franchise and 2) the concept of studio fitness is newer than gyms.
- Equinox is not being challenged in the luxury gym space. Most competitors are in-market high-end clubs (like Bay Club, which is only on the west coast).
- There is a much smaller price-spread for studio classes than for gyms.
Estimating sidewalk traffic and in-store traffic is valuable for retailers when making real estate decisions. These figures help them estimate sales, choose hours of operation, and evaluate the rents they should be willing to pay.
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To help our retail clients estimate foot and in-store traffic, we purchase raw mobile data and process the millions of data points in-house. This data-driven approach increases accuracy compared to traditional counting methods and saves both time and money. To showcase this, we’ve built a movie that compares sidewalk and in-store traffic using mobile data for a retail location in Los Angeles.
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Part of serving our retail clients involves understanding their competitors’ target customer and market entry strategy. We analyzed Sephora, one of the largest companies in the personal care and beauty space, and found that their locations regress most closely with total households and not a particular income range. This is evidence that Sephora is a mass-market brand whose target customer comes from a wide range of income levels.
You can interact with these Tableau Vizzes here.
We’ve worked on over 40 markets around the world, helping companies use data to develop an expansion strategy and evaluate new locations. One of the first things we do when working on a new market is to study the POI (Points of Interest) data along with our wealth and demographic data. We recently made this movie, “Getting to Know Dubai,” to help educate ourselves about the market. See the movie below or click here to interact directly with the map.
Read MoreWe’ve created a growth map for Equinox fitness clubs in Los Angeles, showing locations each year from 2002 to 2018. You can view the GIF (movie) below.
Between 2002 and 2018, Equinox went from 0 to 11 fitness clubs in Los Angeles. Based on the map and our knowledge of Los Angeles, we would predict that their next opening would be in Mar Vista or Sawtelle. There is also the possibility that this market is now fully saturated; we would investigate this question with an analysis of membership at Equinox’s fitness clubs and a study of their competitors’ capacity using mobile data geofencing.
Hong Kong is one of the wealthiest places in the world. As part of our new High Net Worth Individual (HNWI) data product, we’ve built a GIF (movie) which shows the levels of wealth concentration in Hong Kong.
Read MoreAs a follow-up to our Whole Foods Manhattan study, we’ve created a growth map for SoulCycle in Manhattan. To visualize this, we created a GIF (movie) of SoulCycle locations each year from 2005 to 2018, which you can view below.
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SoulCycle has gone from 0 to 17 studios in Manhattan in the last 13 years. As of today, 41% of the Manhattan population and 66% of households earning $200k or more live within a 15-minute walk of a SoulCycle studio. Based on the map and our knowledge of New York, we would predict that their next openings would be in Hudson Yards, the Lower East Side and the southern part of Harlem.
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Webster Pacific tracks Whole Foods store locations in markets around the world to better understand retail site selection and in-market wealth. Between 2001 and 2017, Whole Foods has gone from 0 to 10 stores in Manhattan. As of today, 70% of the Manhattan population and 88% of households earning $200k or more live within a 10-minute drive of a Whole Foods store.
To see this “assault on Manhattan,” we created a GIF (movie) of Whole Foods locations each year from 2000 to 2018, which you can view here:
Read MoreWebster Pacific has been working on Property Price Prediction Maps in markets across the United States. These maps provide our prediction, based upon geospatial wealth-change calculations, of where property prices will increase. Below, you will find maps of Manhattan, Miami, and LA, and you can find the map of San Francisco here.
Manhattan
Miami
Los Angeles
